[Federal Register Volume 88, Number 119 (Thursday, June 22, 2023)]
[Notices]
[Pages 40813-40816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13282]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Salt Lake City Area Integrated Projects and Colorado River 
Storage Project--Rate Order No. WAPA-206

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed firm power fixed rate and transmission 
services, ancillary services, and sale of surplus products formula 
rates.

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SUMMARY: The Colorado River Storage Project (CRSP) Management Center 
(MC) of the Western Area Power Administration (WAPA) proposes a new 
Salt Lake City Area Integrated Projects (SLCA/IP) firm power rate and 
updated effective dates for existing CRSP transmission, joint dispatch 
transmission, ancillary services, and sale of surplus products formula 
rates. The current firm power rate expires December 31, 2023. The CRSP 
transmission services, ancillary services, and surplus products rates 
that expire September 30, 2025, and the CRSP joint dispatch 
transmission service rate that expires September 30, 2024, are included 
in Rate Order No. WAPA-206 to make all the rate schedules effective for 
the same timeframe. The firm power service rate is proposed to remain 
the same. No material changes are proposed to the other rate schedules 
aside from updating the effective dates.

DATES: A consultation and comment period will begin June 22, 2023 and 
ends September 1, 2023. CRSP MC will present a detailed explanation of 
the proposed rates and other modifications at public information forums 
on the following dates and times:
    1. Public information forum July 19, 2023, 12:00 p.m. to 2:00 p.m. 
Mountain Daylight Time (MDT). This meeting will be conducted in Salt 
Lake City, UT, along with a WebEx option.
    2. CRSP MC will accept oral and written comments at a public 
comment forum on the following date and time: August 15, 2023, 12:00 
p.m. to no later than 2:00 p.m. MDT. This meeting will be conducted via 
WebEx.

ADDRESSES: Written comments and requests for information about Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
rates submitted by WAPA to FERC for approval should be sent to: Rodney 
Bailey, CRSP Manager, Colorado River Storage Project Management Center, 
Western Area Power Administration, 1800 South Rio Grande Avenue, 
Montrose, CO 81401, or email: [email protected]. CRSP MC will 
post information about the proposed rates and written comments received 
to its website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.

FOR FURTHER INFORMATION CONTACT: Tony Henriquez, Rates Specialist, 
Colorado River Storage Project Management Center, Western Area Power 
Administration, 970-240-6546, or email: [email protected].

SUPPLEMENTARY INFORMATION: On May 12, 2022, FERC approved and confirmed 
Rate Schedule SLIP-F12 for Firm Power Service under Rate Order No. 
WAPA-199 on a final basis through December 31, 2023.\1\ On March 18, 
2022, FERC approved and confirmed Rate Schedule SP-NFJDT for Joint 
Dispatch Transmission Service under Rate Order No. WAPA-195 on a final 
basis through September 30, 2024.\2\ On December 17, 2020, FERC 
approved and confirmed the following rate schedules under Rate Order 
No. WAPA-190 on a final basis through September 30, 2025.\3\ These rate 
schedules are: SLIP-F11 for Firm Power Service (later superseded by 
SLIP-F12), SP-NW5 for Network Integration Transmission Service, SP-PTP9 
for Firm Point-to-Point Transmission Service, SP-NFT8 for Non-Firm 
Point-to-Point Transmission Service, SP-UU2 for Unreserved Use 
Penalties, SP-E15 for Energy and Generation Imbalance, SP-SSR5 for 
Operating Reserves--Spinning and Supplemental Reserve Services, and SP-
SS1 for Sale of Surplus Products. The proposed firm power rate is a 
fixed rate. The proposed transmission, ancillary services, and surplus 
products rates continue the formula-based methodology that includes an 
annual update to the financial and load data in the applicable rate 
formulas. The inputs into the formulas and resulting charges under the 
rates will be annually updated on October 1 thereafter. CRSP MC intends 
the proposed rates to go into effect January 1, 2024, and remain in 
effect until December 31, 2028, or until WAPA supersedes or changes the 
rates through another public rate process pursuant to 10 CFR part 903, 
whichever occurs first.
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    \1\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF 22-1-000 (179 FERC ] 62,085 (2022)).
    \2\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF 21-7-000 (178 FERC ] 62,154 (2022)).
    \3\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF 20-7-000 (173 FERC ] 61,230 (2020)).
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    The proposed rates will provide sufficient revenue to recover 
annual operation, maintenance, and replacement expenses, interest 
expense, irrigation assistance, and capital repayment requirements 
while ensuring repayment of the project within the cost recovery 
criteria set forth in Department of Energy (DOE) Order RA 6120.2. For 
more information on the proposed rates, including the Cost Recovery 
Charge component, please see the customer rate brochure (brochure) 
located on CRSP MC's website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.
    The Comment and Consultation period is shorter than 90 days and 
will end on September 1, 2023. In accordance with 10 CFR 903.14(a), 
WAPA has shortened the comment period to less than 90 days for good 
cause. This timeframe is necessary to implement a new rate effective 
January 1, 2024. There also was a delay in processing this Federal 
Register Notice resulting from the unexpected loss of key rates 
personnel.

SLCA/IP Firm Power Rate

    Under the current Rate Schedule SLIP-12, the energy rate is 12.36 
mills per kilowatt hour (mills/kWh) and the capacity rate is $5.25 per 
kilowatt month ($/kWmonth). The composite

[[Page 40814]]

rate of all charges, used for reference only as a comparison against 
other wholesale power rates, is 30.51 mills/kWh.
    Currently, CRSP MC uses the Bureau of Reclamation's (Reclamation) 
most probable monthly water releases and end-of-month elevations as 
reported in Reclamation's August 24-Month Study, provided by 
Reclamation--Upper Colorado Basin, to determine the first year of 
firming-energy-sales/generation projections. For energy-sales/
generation projections in subsequent years, CRSP MC will use data 
provided by Reclamation's Colorado River Mid-term Modeling System 
(CRMMS). Under Rate Schedule SLIP-F13, CRSP MC proposes no changes to 
the customers 30 days' notice before reducing the Deliverable Sales 
Amount (DSA) if Lake Powell's water level drops below the level at 
which its turbines can no longer generate power, as established in Rate 
Schedule SLIP-F12. CRSP MC will update the customer rate brochure 
throughout the rate process as data and processes are updated or added.
    The revenue requirement for the proposed firm power rate is based 
on fiscal year (FY) 2022 historical financial data and estimated FY 
2025 work plans for WAPA and Reclamation. The Reclamation FY 2023 April 
24-Month Study is the source for the generation data for this proposal 
FRN. Table 1 shows a comparison of costs of the existing rate 
structures, without the additional purchased power expenses.

                          Table 1--Comparison of Existing and Proposed Firm Power Rates
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                                                  Existing rate under      Proposed rate under
                                                 rate schedule SLIP-F12  rate achedule  SLIP-F13
                 Rate schedule                   effective  December 1,    effective  January 1,      Change
                                                          2021                     2024
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Base Rate:
    Firm Energy: (mills/kWh)..................                    12.36                    12.36            0.0%
    Firm Capacity: ($kW/month)................                     5.25                     5.25            0.0%
    Composite Rate/ \1\ (mills/kWh)...........                    30.51                    31.14           +2.0%
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\1\ The composite rate is used for reference only as a comparison against other wholesale power rates.

Deliverable Sales Amount

    CRSP MC will continue to use the DSA methodology established in 
Rate Order No. WAPA-199 to address drought conditions in the 
southwestern United States and volatile purchased power costs. Under 
DSA, sales are limited to projected generation, and CRSP MC will make 
firming purchases up to the forecasted DSA level. WAPA will include 
projected costs for operational expenses necessary to meet DSA, and 
these costs will be included in the rate based on expenses incurred in 
FY2022 and FY2023. CRSP MC will continue to offer the Western 
Replacement Firming (WRF) product. WRF is optional purchased power to 
firm to customers' Sustainable Hydropower (SHP) allocation levels, the 
cost of which is passed through to firm power customers under a 
separate charge for those customers electing WRF. Both DSA and WRF will 
continue to be updated quarterly using the applicable 24-month study 
from Reclamation. WRF will continue to be billed as it is requested to 
match cost collection with cost occurrence.
    Any customer electing not to receive its share of the purchased 
power costs through WRF will not be charged for WRF. These customers 
will receive a proportionate amount of capacity and energy from CRSP MC 
each month under the DSA, charged at the proposed firm power rate, 
reflecting projected hydropower generation levels.

Cost Recovery Charge

    CRSP MC will continue to use a Cost Recovery Charge (CRC), if 
necessary. The CRC is a mechanism to adequately recover and maintain a 
sufficient balance in the Upper Colorado River Basin Fund (Basin Fund) 
in the event projected expenses significantly exceed projected revenue 
estimates. The Basin Fund is a revolving fund and operates without 
annual appropriations. The CRC is an additional surcharge on all SHP 
energy deliveries, which are long-term energy sales provided under 
WAPA's SLCA/IP firm electric service contracts. The CRC may be 
implemented when, among other things, the Basin Fund's cash balance is 
at risk due to low hydropower generation, high prices for firming 
power, or emergency capitalized investment funding. The CRC is based 
only on Basin Fund cash analysis and is independent of the SLCA/IP 
Power Repayment Study calculations.

Transmission Services

Annual Transmission Revenue Requirement (ATRR)

    CRSP MC does not propose any material changes to the existing 
formula rate for calculating the ATRR, applicable to the rates for 
Network Integration Transmission Service and other transmission 
services. The ATRR is the annual cost of the CRSP Transmission System 
adjusted for Non-Firm Point-to-Point revenue credits, other 
miscellaneous charges or credits, and the prior year true-up.

Network Integration Transmission Service

Formula Rate (SP-NW5)

[[Page 40815]]

[GRAPHIC] [TIFF OMITTED] TN22JN23.003

    CRSP MC proposes no material changes to the rate schedules for 
network integration transmission service under proposed Rate Schedule 
SP-NW6.

Firm and Non-Firm Point-to-Point Transmission Services

Formula Rate (SP-PTP9)
[GRAPHIC] [TIFF OMITTED] TN22JN23.004

Formula Rate (SP-NFT8)
Maximum Non-Firm Point-To-Point Transmission Rate = Firm Point-To-Point 
Transmission Rate

    CRSP MC proposes no material changes to the rate schedules for 
point-to-point service under proposed Rate Schedules SP-PTP10 and SP-
NFT9.

Joint Dispatch Transmission Service

Formula Rate (SP-NFJDT)
Hourly Delivery:
    On-Peak Hours: $0.00/MWh
    Off Peak Hours: $0.00/MWh

    CRSP MC proposes no material changes to the rate schedule for joint 
dispatch transmission service under Rate Schedule SP-NFJDT.

Unreserved Use Penalties

    CRSP MC proposes no material changes to the rate schedule for 
unreserved use penalties under proposed Rate Schedule SP-UU3.

Ancillary Services

Energy Imbalance and Generator Imbalance Services

    CRSP MC proposes no material changes to the rate schedule for 
energy imbalance and generator imbalance under proposed Rate Schedule 
SP-EI6.

Spinning and Supplemental Reserves Services

    CRSP MC proposes no material changes to the rate schedule for 
operating reserves--spinning and supplemental reserves services under 
proposed Rate Schedule SP-SSR6.

Sale of Surplus Products

    CRSP MC proposes no material changes to the rate schedule for the 
sale of surplus products under proposed Rate Schedule SP-SS2.

Legal Authority

    Existing DOE procedures for public participation in power and 
transmission rate adjustments (10 CFR part 903) were published on 
September 18, 1985, and February 21, 2019.\4\ The proposed action is a 
major rate adjustment, as defined by 10 CFR 903.2(d). In accordance 
with 10 CFR 903.15(a) and 10 CFR 903.16(a), CRSP MC will hold public 
information and public comment forums for this rate adjustment. CRSP MC 
will review and consider all timely public comments at the conclusion 
of the consultation and comment period and adjust the proposal as 
appropriate. The rates will then be approved on an interim basis.
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    \4\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    WAPA is establishing the SLCA/IP firm power rate, CRSP transmission 
and ancillary services formula rates, and sale of surplus products 
formula rate in accordance with section 302 of the DOE Organization Act 
(42 U.S.C. 7152).\5\
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    \5\ This Act transferred to, and vested in, the Secretary of 
Energy the power marketing functions of the Secretary of the 
Department of the Interior and the Bureau of Reclamation 
(Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 
388), as amended and supplemented by subsequent laws, particularly 
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 
485h(c)) and other acts that specifically apply to the projects 
involved.
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    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 
2016, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the WAPA Administrator; (2) the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to the Deputy Secretary of Energy; and (3) the authority 
to confirm, approve, and place into effect on a final basis, or to 
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to the Under Secretary for Infrastructure. 
By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023, 
the Under Secretary for Infrastructure further redelegated the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to WAPA's Administrator.

Availability of Information

    All brochures, studies, comments, letters, memoranda, or other 
documents that CRSP MC initiates or uses to develop the proposed rates 
are available for inspection and copying at the Colorado River Storage 
Project Management Center, located at 1800 South Rio Grande Avenue, 
Montrose, Colorado. Many of these documents and supporting information 
are also available on WAPA's website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA is determining whether an environmental assessment or an 
environmental impact statement should

[[Page 40816]]

be prepared or if this action can be categorically excluded from those 
requirements.\6\
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    \6\ In compliance with the National Environmental Policy Act 
(NEPA) of 1969, as amended, 42 U.S.C. 4321-4347; the Council on 
Environmental Quality Regulations for implementing NEPA (40 CFR 
parts 1500-1508); and DOE NEPA Implementing Procedures and 
Guidelines (10 CFR part 1021).
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Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Signing Authority

    This document of the Department of Energy was signed on June 2, 
2023, by Tracey A. LeBeau, Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on June 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-13282 Filed 6-21-23; 8:45 am]
BILLING CODE 6450-01-P